89R21636 RDS-F
By: Villalobos, et al. H.B. No. 3093
A BILL TO BE ENTITLED
AN ACT
relating to the calculation of certain ad valorem tax rates of a
taxing unit for a year in which a property owner provides notice
that the owner intends to appeal an order of an appraisal review
board determining a protest by the owner regarding the appraisal of
the owner's property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 5.07(g), Tax Code, is amended to read as
follows:
(g) The forms described by Subsection (f) must be in an
electronic format and:
(1) have blanks that can be filled in electronically;
(2) be capable of being certified by the designated
officer or employee after completion as accurately calculating the
applicable tax rates and using values that are the same as the
values shown in, as applicable:
(A) the taxing unit's certified appraisal roll;
or
(B) the certified estimate of taxable value of
property in the taxing unit prepared under Section 26.01(a-1);
[and]
(3) be capable of being electronically incorporated
into the property tax database maintained by each appraisal
district under Section 26.17 and submitted electronically to the
county assessor-collector of each county in which all or part of the
territory of the taxing unit is located; and
(4) be capable of including the addendum to the forms
required by Section 26.04(d-3), if applicable.
SECTION 2. Section 26.012, Tax Code, is amended by adding
Subdivisions (1-a), (1-b), (1-c), (2-a), (2-b), and (20) to read as
follows:
(1-a) "Affected taxing unit" means a taxing unit that
is wholly or partly located in a county that:
(A) has a population of less than 500,000; and
(B) is located on the Gulf of Mexico.
(1-b) "Anticipated substantial litigation" means one
or more appeals filed or intended to be filed under Chapter 42 for a
tax year by a single property owner or by one or more associated
business entities of a single property owner of one or more orders
of an appraisal review board determining one or more protests by the
owner or entities of the taxable value of one or more parcels of
property located in an affected taxing unit, if any of the
properties:
(A) had a taxable value in the preceding tax year
that was one of the 20 highest in the appraisal district in which
the property is located; and
(B) has a current year taxable value that exceeds
125 percent of the amount of the uncontested taxable value of the
property.
(1-c) "Associated business entity" means a subsidiary
or other associated business entity of a property owner.
(2-a) "Contested taxable value" means for a tax year
the difference between:
(A) the current year taxable value of a property;
and
(B) the:
(i) taxable value of the property asserted
by the owner of the property in an appeal of the appraisal review
board order under Chapter 42; or
(ii) if the owner has not filed an appeal, a
good faith determination of the taxable value the owner will assert
in the appeal.
(2-b) "Current year taxable value" means the taxable
value of a property stated in or determined from:
(A) an order issued by the appraisal review board
hearing a protest pertaining to the property for the tax year under
Chapter 41; or
(B) if the appraisal review board has not issued
an order determining the protest, the notice of appraised value for
the property delivered under Section 25.19 for the most recent tax
year.
(20) "Uncontested taxable value" means the portion of
the taxable value of a property that is not contested taxable value.
SECTION 3. Section 26.012(6), Tax Code, is amended to read
as follows:
(6) "Current total value" means the total taxable
value of property listed on the appraisal roll for the current year,
including all appraisal roll supplements and corrections as of the
date of the calculation, less the taxable value of property
exempted for the current tax year for the first time under Section
11.31 or 11.315, except that:
(A) the current total value for a school district
excludes:
(i) the total value of homesteads that
qualify for a tax limitation as provided by Section 11.26;
(ii) new property value of property that is
subject to an agreement entered into under former Subchapter B or C,
Chapter 313; and
(iii) new property value of property that
is subject to an agreement entered into under Subchapter T, Chapter
403, Government Code; [and]
(B) the current total value for a county,
municipality, or junior college district excludes the total value
of homesteads that qualify for a tax limitation provided by Section
11.261; and
(C) the current total value for an affected
taxing unit excludes the portion of the aggregate taxable value of
all of the property located in the taxing unit that is included as
part of anticipated substantial litigation that consists of
contested taxable value.
SECTION 4. Section 26.04(d-3), Tax Code, is amended to read
as follows:
(d-3) As soon as practicable after the designated officer or
employee calculates the no-new-revenue tax rate and the
voter-approval tax rate of the taxing unit, the designated officer
or employee shall submit the tax rate calculation forms used in
calculating the rates to the county assessor-collector for each
county in which all or part of the territory of the taxing unit is
located. If an amount described by Section 26.012(6)(C) is
excluded from the current total value of an affected taxing unit for
a tax year, the designated officer or employee for the taxing unit
shall include as an addendum to the tax rate calculation forms for
that tax year:
(1) documentation that supports the exclusion; and
(2) each statement submitted to the designated officer
or employee under Section 41.48(c)(2) for that tax year.
SECTION 5. Section 26.16(d-1), Tax Code, is amended to read
as follows:
(d-1) In addition to posting the information described by
Subsection (a), the county assessor-collector shall post on the
Internet website of the county for each taxing unit all or part of
the territory of which is located in the county:
(1) the tax rate calculation forms used by the
designated officer or employee of each taxing unit to calculate the
no-new-revenue and voter-approval tax rates of the taxing unit for
the most recent five tax years beginning with the 2020 tax year, as
certified by the designated officer or employee under Section
26.04(d-2), along with the addendum to those forms required by
Section 26.04(d-3), if applicable; and
(2) the name and official contact information for each
member of the governing body of the taxing unit.
SECTION 6. Sections 26.17(e) and (f), Tax Code, are amended
to read as follows:
(e) The officer or employee designated by the governing body
of each taxing unit in which the property is located to calculate
the no-new-revenue tax rate and the voter-approval tax rate for the
taxing unit must electronically incorporate into the database:
(1) the information described by Subsections (b)(5),
(6), (7), (12), and (13), as applicable, as the information becomes
available; and
(2) the tax rate calculation forms prepared under
Section 26.04(d-1), along with the addendum to those forms required
by Section 26.04(d-3), if applicable, at the same time the
designated officer or employee submits the tax rates to the
governing body of the taxing unit under Section 26.04(e).
(f) The chief appraiser shall make the information
described by Subsection (e)(1) and the tax rate calculation forms,
along with the addendum to those forms required by Section
26.04(d-3), if applicable, described by Subsection (e)(2)
available to the public not later than the third business day after
the date the information and forms are incorporated into the
database.
SECTION 7. Subchapter C, Chapter 41, Tax Code, is amended by
adding Section 41.48 to read as follows:
Sec. 41.48. NOTICE OF CERTAIN APPEALS; SUBMISSIONS BY
PROPERTY OWNER. (a) In this section, "affected taxing unit,"
"anticipated substantial litigation," "associated business
entity," and "uncontested taxable value" have the meanings assigned
by Section 26.012.
(b) Not later than July 1, the officer or employee
designated by the governing body of each affected taxing unit under
Section 26.04(c) shall notify each property owner in the taxing
unit who owns a property that had a taxable value in the preceding
tax year that was one of the 20 highest in the appraisal district in
which the property is located that the owner may have to comply with
the requirements of this section.
(c) A property owner or associated business entity of the
owner that intends to file an appeal under Chapter 42 that is part
of anticipated substantial litigation shall submit to the officer
or employee described by Subsection (b) of each affected taxing
unit in which the property included in the litigation is located:
(1) the total amount of uncontested taxable value of
all property located in the taxing unit that may be the subject of
an appeal by the property owner or entity and that is part of the
litigation; and
(2) a written statement providing that the property
owner or entity intends to pay the tax due on the amount of the
uncontested taxable value.
(d) A property owner or associated business entity of the
property owner must submit the information required to be submitted
under this section not later than the earlier of August 7 or the
21st day after the date the first hearing regarding a protest of the
value of any property included in the anticipated substantial
litigation is conducted under this chapter.
(e) Notwithstanding any other provision of this section,
the amount of uncontested taxable value submitted to a designated
officer or employee under this section may be used by the designated
officer or employee only for the purpose of calculating a tax rate
under Section 26.04 and may not be construed as an amount of value
of a property that is not in dispute for purposes of a proceeding
under Chapter 42.
SECTION 8. (a) Except as provided by Subsection (b) of this
section, the changes in law made by this Act apply to an ad valorem
tax year that begins on or after January 1, 2026.
(b) If this Act receives the vote necessary to have
immediate effect, the changes in law made by this Act apply to an ad
valorem tax year that begins on or after January 1, 2025.
SECTION 9. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.